The June figures from the trade body showed loans for house purchase rose to 45,000 from 36,500 in May. However, this was still less than half the average number of loans recorded in June over the last seven years. Between April and June 2009, 116,700 house purchase loans were advanced by lenders, a 50% increase from the preceding three months but down 22% from Q2 2008.

Remortgage loans also increased by 13% from May to 34,000 in June. However, low interest rates dampened the overall demand for remortgaging in Q2 with 96,000 loans advanced, a 21% fall from 122,000 in Q1 2009.

The CML also said fixed rate deals increased in take-up throughout Q2 accounting for 78% of new lending by June 2009, which was the largest share since June 2007, as a result of wider availability.

Loans to first time buyers and home movers were also higher than May but down from June 2008.

There were 17,200 loans to first-time buyers worth £1.9bn, up from 13,700 loans in May but below the figure of 18,400 in June 2008. 27,800 loans were made to home movers worth £4bn, up from 22,700 in May but down from 29,500 in June 2008.

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The CML also said affordability measures for homebuyers were static and tightening in criteria appeared to have ended.

Home movers typically borrowed 69% of the value of a property, unchanged from April and the typical first-time buyer had a 25% deposit, unchanged since February.

However, income multiples increased, with the typical first-time buyer borrowing 3.08 times their income, compared to 3.04 in May, and home movers borrowing 2.76, compared with 2.74 in May.

Paul Samter, econnomist at the CML, said lending criteria had eased.

He added: “Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.”